Suppose You Win the Lottery and One of Your Payment

question 54

Multiple Choice

Suppose you win the lottery and one of your payment options is to receive $20,000 today,$20,000 one year from now,and $20,000 two years from now.If the interest rate is 5%,what is the present value of this option?

• A)$51,830.26
• B)$54,464.96
• C)$57,188.21
• D)$58,237.71

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Definitions:

Biotransformation

The chemical alteration of substances within living organisms, transforming or breaking down substances.

Rate of Absorption

The speed at which a substance is taken into the body or into a material, typically referring to nutrients, drugs, or chemicals.

Subcutaneous

Pertaining to or situated under the skin, often used to describe injections or implants administered beneath the skin layer.

Intrathecal

Intrathecal refers to the administration of drugs or other substances directly into the space under the arachnoid membrane of the brain or spinal cord.